Ramp-up headaches hit Embraer profits
Results: Embraer's fortunes - on an upward roll for around a decade - have taken a knock, with first-quarter profits falling 60% to $26.2 million. The company was hit by production delays and problems ramping up its output to meet a growing orderbook. The Brazilian company delivered 25 of its E-170/190 regional jet family, compared with 27 in the same quarter in 2006 and said it was also affected by rising labour costs, partly because it had to pay employees overtime to meet delivery schedules. It says it has hired around 2,000 staff since January to handle the extra work, and the cost of their up to 90-day training programme had also hit the bottom line. Revenues in the first quarter rose 4.3% to $843 million.
MBDA buys Meteor rocket motor supplier
Acquisition: Consolidation in the European missile market continues with MBDA's agreement to buy one of its key suppliers, German rocket motor company Bayern-Chemie/Protac, from its joint owners, EADS and Thales. Bayern-Chemie/Protac, which has a plant in Germany and a smaller operation in France, makes the ramjet for MBDA's Meteor beyond visual range air-to-air missile system, and has a turnover of €53 million ($72 million). The European missile house - a BAE Systems, EADS and Finmeccanica venture - is the company's main customer. MBDA group strategy and planning director Guiseppe Snider says the acquisition is "another decisive step in consolidating the European missile systems industry under the leadership of MBDA". Bayern-Chemie/Protac, which has just under 200 employees, will become part of the German arm of MBDA, which now includes former rival missile manufacturer LFK.
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Umeco businesses now called Pattonair
Rebranding: Umeco is rebranding all the businesses in its components and supply chain management division under the Pattonair brand. Pattonair is one of three operations in the division - the Ulogistics and Abscoa names will disappear. UK-based Umeco, which is listed on the London Stock Exchange and turned over £293 million ($580 million) has two other divisions, manufacturing composite materials and specialist chemical products and offering repair and overhaul services.
Doncasters completes FastenTech purchase
Expansion: Doncasters, the UK-based precision engineering group, has completed its $492 million acquisition of FastenTech, the US manufacturer of fasteners and components for the aerospace and industrial gas turbine sectors. Doncasters chief executive Eric Lewis says the acquisition fits the company's strategy of expanding its US presence. Minneapolis-based FastenTech has 1,800 employees.
AJ Walter opens in central Europe
Growth: Spares distributor AJ Walter is opening a logistics hub in Prague, Czech Republic to support a new contract with local airline Travel Service and serve as a platform for "developing our market in central and eastern Europe", says managing director Christopher Whiteside. The UK company, which specialises in the supply, repair and lease of spare parts and inventory management, supports 150 aircraft under power-by-the-hour contacts.
Source: Flight International
